By:
M.S.Yatnatti: Editor and Video Journalist Bengaluru: Confederation of Real
Estate Developers' Association of India failed to convince the Karnataka government government to cut or abolish stamp duty and
registration fee in the wake of GST being implemented and it amounts to double
taxation as the state government is increasing the guidance value between 10
per cent and 25 per cent and it has issued draft notification in this regard .Brigade's
revenue from operations rose 11%, Sobha's grew 6.2%, and Prestige, the biggest
among the city developers, reported a 5.5% increase to Rs 1,444 crore, compared
to the year-ago quarter .Puravankara's revenue from operations rose 17.4% to Rs
371.53 crore."The sales from all the segments and, especially from the higher
segments, improved overall realization for builders. "The market has improved
in Hyderabad and in the current environment in Bengaluru, having stable sales
is a good sign of improvement .Are you planning
to build or buy your dream home in near future ? You may want to hold on for
some time, as developers led by the Confederation of Real Estate Developers'
Association of India (Credai), Bengaluru, are trying to convince the Karnataka
government to cut or abolish stamp duty and registration fees in the wake of
the goods and services tax (GST) being implemented from July .If the move is
successful, you will definitely save some money. "Else, it is expected to
burden home buyers by 10%15%," say some industry leaders. Reportedly Suresh Hari,
secretary, Credai, Bengaluru, confirmed they had submitted a petition to former chief minister
Siddaramaiah, seeking either to abolish or reduce stamp duty as it is expected
to hurt home buyers with the introduction of GST. Though GST was introduced to
eliminate multiple taxation, he said the real estate sector will be an
exception because home buyers are bound to pay GST along with stamp duty and
registration fees, which account for 5.6% of the property value. "GST and RERA
will certainly add to overheads of the industry and increase housing prices by
10%-15%. It's time the state government steps in to protect home buyers by
either abolishing or reducing stamp duty levied on all immovable property after
implementation of GST," .